tv [untitled] February 17, 2015 2:30pm-3:01pm PST
mocd utilizing state and federal tax credits. those units allow us to leverage local investments at a rate of 2 to 1. we are also rehabilitating close to 4,000 public housing units, constructing new public housing units through the hope sf program and stabilizing at risk rental units. we're tracking our progress toward meeting the mayor's goals and we're actively working with the planning department, the office of economic and work force development and other public agencies to ensure that we're working as effectively as possible. as you also know, in november of 2014 voters overwhelmingly passed proposition k proposition k reflects the mayor's housing goals, that 30,000 unit number you keep hearing, with its affordable housing ratio, and then further proposition k sets a city policy that the city will attempt to ensure that 33 percent of all new housing
produced in rezoned areas will be affordable to low and moderate income households and that funding strategies will be identified to fund new affordable housing and to preserve existing rental stock and public housing. a year ago the mayor convened a housing working group consisting of a broad swath of stake holders market rate developers, nonprofit developers, advocates, funders. there were over 100 participants in the working group. and the working group set out to provide recommendations and to suggest solutions to help us attack the housing crisis from a number of different angles. so key recommendations are summarized on this slide and i'll try to just touch on each of them. existing neighborhoods need to be stabilized. funding sources need to be expanded beyond the traditional programs. and the band of affordability needs to be widened, it needs to go more deeply affordable and it needs
to provide housing for higher incomes than we have traditionally reached. we need to add affordable units to new construction and we need to increase efficiencies wherever possible. so it's clear under this first bullet of neighborhood stablization that we have work to do. long time renters and residents across all income levels feel pressure. tenants who have been evicted through the ellis act now if they income qualify have a preference in our affordable housing lotteries. we are encouraging the preservation of existing rental stock through our small sites program. in that program we acquire at market rate at risk buildings that are rental and we convert them to permanently deed restricted affordable housing. we have also made efforts to acquire naturally (inaudible) therefore adding to the city's housing supply. and we have maintained our
commitments to rebuild public housing, which serves our city's most vulnerable residents. i'm a little frozen, but i can tell you what's next without the presentation. the income slide will tell you that the next bullet is to increase funding sources. we need to increase funding for affordable housing and this means that we need to continue to invest in affordable housing, as well as to partner with the private sector to speed the acquisition of land, units and buildings. we also need to find ways to augment funding to reach our middle income goals. as you know,
mocd uses federal and state tax credits to leverage every local dollar that goes into affordable housing. typically we leverage at least $2 for every $1 that goes into affordable housing. units that go into tax credits do require restricting units to 55 percent of area median income, which means tenants can earn between $48,000 and $58,000 for a family of four in order to qualify for our affordable housing units. this means in order to produce more mod draft income housing for teachers, nonprofit workers and other professionals who may make more than 50 or 60 percent average median income but not enough to find or stay in the city, we need to find new sources and methods and that brings me to the next goal, which is to widen the band of affordability.
as you know, a key goal of the mayor's is to widen the band of affordable housing to include moderate income san francisco residents. key strategies to widen the affordability gap is to increase our available down payment loans to facilitate more first time home buyers. we want to continue to work with market rate developers to provide incentives to increase the number of inclusionary or affordable housing units that they provide on and off site in a market rate development and those inclusionary units don't rely on tax credits. we have a little bit more flexibility at the city level. we also looking at legislative changes that would create a dial so that we can incentivize market rate developers to provide more on site
inclusionary units that target higher income levels. we also have our acquisition rehab strategy which allows the acquisition of existing rent controlled units or the buildings with rent controlled buildings and then converting them to deed-restricted affordable units and i characterize this as a moderate income strategy because the units in our small sites program don't necessarily need to restrict rents to affordable levels at 50 percent area median income. in this program the rents in a building can average 80 percent of area median income, which means there can be some units that are higher, some units that are lower, as long as the average is 80. then we also do want to pilot mixed income projects. and i just want to pause for a minute and discuss how those mixed income projects could work. as i described, our traditional affordable housing portfolio relies on tax credits to leverage funds. that means we have to restrict those units
to approximately 50 percent of area median income. one way to reach moderate income targets is to within a single site use the profit from market rate units to subsidize moderate income units that don't benefit from tax credits. so this requires a single site that is large enough to support a mix of moderate market and affordable units. and as the mayor has mentioned a number of times we are also looking at different ways to increase the affordability in new development. we are partnering with market rate developers and working with the planning department as they craft a local density bonus program that would reward the provision of additional affordable units and market rate projects by providing, in return, a density bonus. that's in addition to the dial program so essentially we have two programs we're looking at
related to inclusionary. one would provide a bonus for providing a density bonus for providing more affordable units and the other would trade letting you provide more units but at a higher income target. another way to increase the number of affordable units is, as i discussed, to increase the number of affordable units on publicly owned sites. public sites can provide a combination of affordable and moderate rate units when there are rates that can be used to subsidize and a prime example of this is the balboa site near city college which has enough space to have a 100 percent stand alone building. in rezoned areas higher affordability targets define nd proposition k can be the new standard and an example of that is what we're looking at with the planning department
in central soma where the goal is to achieve 33 percent affordability when the area is rezoned. lastly, the housing working group has also recommended a series of process and efforts i would characterize as good government efforts to maximize efficiencies at the review and permitting stage, including things like the priority processing executive directive that is in place which allows housing development projects that exceed the base affordability requirements to jump the queue and get prioritized at all permitting agencies throughout the city. the mayor has accepted the recommendations of the housing working group and now it's up to us to implement those recommendations through legislation, through finding the funding sources that will help us develop those new moderate income units, a and
then to carry out our commitments. we are looking to introduce legislative amendments in the spring of 2015 for example, to facilitate the dial and to increase inclusionary units in market rate units. we are including to work with the board of supervisors and stake holders to define and develop new funding sources then we want to implement prop k, certainly however we can in rezoning efforts and we will continue to work with regional, state and federal government officials looking at things like the tax credits and whether or not we can, we will certainly advocate for changes that would allow us to reach higher income levels wherever we can. i want to turn this over now to teresa for more specific information about housing developments in the port a*r.
>> thank you. good afternoon, commissioners, tracy yonga the mayor's goal of 10,000 housing units is something we are working diligently for. we recently completed the construction and rehabilitation of over 400 units just within the past year. we currently have over a thousand units in construction or under rehabilitation actively in -- so some of those towers you can see that are going on, those aren't -- all the various construction activities, some of that is on the affordable side as well. we plan to commence construction or start construction and rehabilitation of over 1800 units by the end of this calendar year and also commence construction for
another 2,200 units even as of next year. then for the housing goal of 2020 we'll have another 3500 units to be complete by that time period. next is just a geographic distribution of sites, just to illustrate this most easily we figured we'd try to look by supervisorial units. of those 10,000 units we have within our pipeline, as you can see there is quite a wide distribution except for over towards the west side. a lot is going on in south of market. the boundary that you see, a lot's going on in the bayview but there is quite a number of units, over 1400 units, that are being constructed or rehabilitated in the western addition as well as in the castro the mission and some even in north beach in the financial district. and we also have over 300 units going on in the pacific heights and
marina areas. as for the port properties we, as ricky has mentioned, we've been at the port commission before with our memorandum of understanding for seawall lot 2331. we have been meeting with working group members that consist of members of the northeast waterfront advisory group as well as other interested parties in the immediate vicinity of broadway and front such as the barbary coast association, telegraph hill developers, next village sf, we have been met since july over 10 times to work actually on the goals and objectives of the request for proposals. if you may recall from our mou, we are required to issue that rfp within 12 months of the effective date of that mou, which means technically we
should be issuing that rfp by april of this year. and for seawall lot 337, where that pop up commercial space is happening, there are some product specifics that are still in negotiation and under development but we will be working closely with the developer as well as our colleagues at the office of work force development to work on the affordable housing component at seawall 337. then pier 70, as approved to the ballot, there is a requirement of 30 percent affordable primarily through rental units at pier 70. the expectation is that they will be rentals with -- using what we call 80/20 deals, 80 percent market rate with 20 percent affordable then there will be one parcel dedicated to 100 percent affordable housing. as for the next steps on seawall, we will continue to work with our working group
members refining the goals and objectives of our rfp as required by our memorandum of understanding, we will be coming back to the commission prior to the issuance of the rfp so you can actually see the rfp itself. our goal is to issue by april pending our continued discussions with the neighbors. and that concludes staff's presentation. >> thank you. >> thank you, ricky again. that concludes the presentation by the mayor's office of housing. we will be happy to respond to your questions and comments. >> thank you. >> i'm sorry, this is a formalized meeting. the commissioners will call you to speak at the podium if you want
to give public comment, but it's not a community meeting. >> yes, now we have public comment. i have some cards and now is the opportunity to come -- but we need to have you speak at the microphone. first i have peter cohen, council of community housing associations. peter. cards come over here, please. if you want to sign a card you can come over. >> you can submit a card but you don't have to submit a card if you want to speak, you can just come after i finish calling the cards i have here. >> good afternoon, commissioners, my name is peter cohen with the council of community housing organizations. it was an interesting presentation. i will tell you it's also helpful to understand where we are as well as the 30000 goal looking forward. in the most recent housing element, which is the city's general plan housing policy kind of constitution, which just finished in 2014, which tracks how well we've done in
our housing production, we only met 50 percent of our affordable housing needs. so on the one hand we have a mayor's housing goal but i want to emphasize that we have an incredible housing housing hole that we are not out yet. so the acute need to increase affordable housing production particularly for working class folks couldn't be greater. it's our organization, our coalition's position, that publicly owned sites should be used for affordable housing when they have reached their point of utility for whatever other public use, parking lots or older buildings, it's a very precious resource. we should use it smartly for the kind of affordable housing that we cannot get through any other means. there's another more pragmatic reason for that financially, we can leverage as you heard from staff's presentation, two or three dollars for every dollar we invest. that is why for
those few publicly owned sites we bottom line they should be used for public housing, whether seniors or transitional or youth because we get the greatest bang for our buck and serve the greatest need. the city has been talking about balboa reservoir as an opportunity to do a mix of housing because you literally have a large area. as you heard again from staff, in addition to affordable housing that's publicly subsidized you can use part of the site for market rate that can help subsidize your moderate housing. that's a great opportunity. seawall 332 does not provide that scale. the question comes up what do we do about our moderate or middle income housing needs in san francisco and we advocate for them tremendously. you heard the programs and this mayor has made a very strong commitment to increase
flexibility for those needs. again, the one thing we need most often is first time home ownership, how do i get into first time home ownership. we already two years ago doubled the down payment assistance program, we have a $30 million down payment assistance program including special assistance for teachers and first responders. down payment assistance is a core programmatic goal. we also heard staff talking about increasing incentives from market rate developers private developers, who can build at that middle income scale.has to advocate for those things to happen in the same way we advocate for low income housing needs, the community has to advocate for these kind of resources for middle income housing needs and that's where we think you should put your energy. seawall 331 is a low income
whoa in san francisco is already among the highest in the nation. many low income families have no way to afford market rate rent. while there is a need for low income housing many of the units require minimum monthly income of $2,000 or more, which is a great obstacle to many of us. there are many working families with multiple income earners who still do not meet this requirement. for seniors who have even less income on a fixed ssi income, applying for below market rate housing seems almost impossible. our members know very well that most affordable housing are not actually catered toward low income communities.
it is also important to note that it has been a long time since the last develop the of senior housing in district 3 while the city continues to evolve we need to make sure we're taking care of the needs of seniors who are struggling to work here. that is why we strongly urge the commission to make seawall 3321 low income housing so san francisco can remain affordable to everyone, he is sptionly our seniors. >> thank you. next i have
teresa flanders then marsha knight. >> good afternoon. i am teresa flanders and i live in north beach and i am of course witnessing a lot of the evictions in our neighborhood, you know, 30 just within 4 blocks of my own home. i'm concerned about these continuing and where will these people go? most of those who have been evicted are now in peta luma santa cruise, santa rosa because they cannot afford to live here. these are seniors who once were considered milgd class and are no longer middle class given the skewing of the incomes today. but i want to make sure that if neighbors are going to be forced out of their homes that they at least be able to remain in their community especially when they are in their 80's, in their 70's, and so having a low
income housing set here very near to north beach is of great importance to me and to my neighbors. these are people who have worked really hard, these are former engineers, nurses, teachers, these are the people that have been the backbone, along with all of the service people. so low income housing, if the income is less than $46,000 is going to be really important for this group of people the 28 percent of north beach right now. thank you. >> thank you. >> good afternoon, i'm marla knight, cochair of north beach tenants committee. i'm kind of concerned -- first of all say i'm very happy to see the development of a small sites program as i understand that that's probably like the
community land trust, which has been a good program because then we don't have to wait for buildings to be built because as teresa said, north beach, we're seeing so many evictions and the situation has gotten even tighter because many of the units have been converted into short term rentals. but what i'm also concerned about, there seems to be a gap between what's called affordable housing, which was noted as being $48 to $54k a year for a family of four. i would guess that would be in the 30's for one person. and then moderate income never seems to be identified or if it is, you get many different numbers. the latest one i got was around $54,000 for one person. now, i'm a retired city college teacher and i fall between that. so i'm not any
place with that so i wouldn't be eligible for any kind of housing. i think this is particularly important, as you all know that san francisco is getting older all the time and there are going to be more and more retired people like myself who probably have incomes like mine, which is, in, like, the 40's yet we do not fall in low or the affordable housing but we have too little for moderate. anyway, thank you so much. >> thank you. is there any further public comment? come forward. >> hi, i'm joanie leely and i'm with next village san francisco. we're a project in the northeast quadrant mostly district 3 but we (inaudible) works out of market and we will get larger, i'm sure.
but the loss of housing in district 3 is huge and it hits seniors and it hits seniors that are making, according to the 2010 census, $48,500 a year is the median income for somebody 60 years of age and older. 40 percent of those people live alone so when you talk about $48,500 for four people you have seniors who are living on $48,000 a year only because they have rent control. if they lose their housing they are gone and i'm afraid i have to disagree with mr. cohen, i really don't like to do this, but we have senior housing, we have new senior housing in the broadway family housing, we have new senior housing in the solomon project across the way from that, and we have lots of senior housing
at north beach place, which is not brand new but it's pretty new. and we have always welcomed affordable housing in the northeast quadrant. many of us have worked to make those things happen. but now our friends and our neighbors are losing their housing and if we can't have housing for moderate income people who are making $45,000 a year, we are not looking at having a city that is diverse. what we're looking at is a city that has very wealthy people and very poor people and it doesn't matter how old they are. that is the bifurcated city of the future if we're not providing moderate income housing. and seawall lot 322 is a great opportunity to do this at this point, let's
try it, let's see how it works, let's learn from this and build some more mod draft income housing is that alongside and mixed in with market rate housing and affordable housing. thank you very much. >> any other speakers during public comment? please come forward. seeing none public comment is closed. is the executive director -- could you explain just briefly for the public what seawall lot 322 is. >> seawall 322-1 is a lot that is across the embarcadero from the water side. it was once upon a time subsequently there was